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PNY Technology is considering investing in a new project to make a portable USB power bank....
PNY Technology is considering investing in a new project to make a portable USB power bank. The project will need an initial investment of $200,000. THe project is expected to last 10 years. Annual fixed cash outlays for the project is $40,000 a year. The company expects the USB power bank will sell for $80 per unit. THe variable cost to build a USB power bank is $25 per unit. The company uses 12% required rate of return. The salvage value of the project is zero and PNY has a tax rate of 35%. What is the number of units of power bank every year will generate a net present value of $0
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jeff jeffy answered 9 months agoRelated Solutions
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